Nashville, national retailers open temporary spots to test market, sales

Courtney Cochran was handed the keys to a vacant storefront in Hillsboro Village, and less than a week later, the Hester & Cook boutique gift shop was open.

“We popped in there, painted the walls, hung some of our lighting fixtures that we make, filled it full of products and we were ready to roll,” said Cochran, manager of Hester & Cook, which opened Nov. 1 and will close in January.

Utilizing social marketing and a do-it-yourself spirit, temporary stores build buzz around a brand, drive customers to a company’s website and boost sales during the crucial holiday shopping season. For landlords, pop-ups can bring life to a vacant space to help attract future tenants, while generating some extra cash.

The model often allows small retailers to snag a high-profile spot they otherwise couldn’t secure. In cities across the country, temporary stores are popping up in downtown shopping districts, malls, retail strips and even hotel lobbies.

“It’s a good exercise in getting your feet wet in a different market,” Cochran said. “If you’re not familiar with a certain area or not sure how your products will be received, it’s a good opportunity to test it out without the commitment of a long-term commercial lease.”

This shopping season, Hillsboro Village has become home to three pop-ups in H.G. Hill Realty Co.-owned storefronts that will be razed early next year to make way for a mixed-use apartment development. Traditional retailers weren’t interested in a location soon to be torn down, but the temporary space was perfect for the pop-up model. And the timing couldn’t have been better, Cochran said.

“The fourth quarter is key to us,” she said. “In retail that’s when you do most of your business. It’s an opportunity to get a customer base that might not have seen us — in a prime shopping season.”

Landlords should consider leasing to a pop-up retailer to bring foot traffic, said James Foley, a retail broker with CBRE.

It’s also a good way to generate cash to help cover fixed expenses such as property tax and common area maintenance, said Brian Forrester, a retail broker with The Shopping Center Group. However, some landlords don’t get excited about temporary tenants.

“There’s a hassle factor for the landlord,” Forrester said. “Some worry about the worst-case scenario that they are opened up to liability if someone gets hurt or destroys the property.”

The model isn’t just for independent retailers. Microsoft recently opened a pop-up store at The Mall at Green Hills. It’s one of 34 temporary stores the tech giant is experimenting with to boost holiday sales of its new tablet and operating system. Other big names like Toys R Us and Samsung also are getting in the pop-up game.

For Red Earth Trading Co., the pop-up model is “sustainable marketing” for its online business selling handmade jewelry, accessories and leather goods made by artisans in Africa, said Travis Gravette, the company’s founder and CEO. The company’s temporary store in Hillsboro Village opened the day after Thanksgiving and will operate until Jan. 31.

The Nashville-based company has experimented with pop-up stores in Los Angeles, Chicago and Kansas City.

“The pop-up model is a way for us to, without a lot of capital, create a live experience around our brand and products and increase our exposure,” Gravette said.

Gravette doesn’t see retail stores playing a big role in the company’s future.

“Our long-term goal is to have our No. 1 revenue stream be online and continue doing unique pop-up experiences and have a few cornerstone brick-and-mortar stores,” Gravette said.